Joanne Pinch

An Agent Clients

Recommend!

Sales Representative

Is Your Buyer Qualified?

 

Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale.  If possible, try to determine a buyer’s financial status before signing the contract .

Ask these important questions:

· Is the buyer prequalified or preapproved (better) for a mortgage?  Such buyers will be in a much better position to obtain a mortgage promptly.

· Does the buyer have enough money to make a down payment and cover closing costs?  Ideally, a buyer should have a minimum of five percent of the home’s price as a down payment and between 2 and 5 percent of the price to cover closing costs.

· Is the buyer’s income sufficient to afford your home?  Ideally, buyers should spend no more than 32% of total income to cover PITI (principal, interest, taxes and insurance).

· Does your buyer have good credit?  Ask if he or she has reviewed and updated a credit report.

· Does the buyer have too much debt?   If a buyer owes a great deal on car payment, credit cards, etc., he or she may not qualify for a mortgage.

An Agent Clients

Recommend!